. Ann and Bill have formed a business partnership. They each have to decide how much effort to put into the business. Let x denote the amount of effort Ann puts into the business and let y denote the amount of effort Bill puts into the partnership. The profit of the business partnership depends on the amount of effort Ann and Bill put into the business. It is given by 2x + 2y + 0.5xy hundred thousand dollars. Ann and Bill will split the profit equally however they will separately incur the cost of their own effort. The cost of Ann’s effort is 0.5x 2 . The cost of Bill’s effort is 0.5y 2 . Effort is also measured in hundred thousand dollars. a. What is Ann and Bill’s payoff function? b. If Bill puts in an effort level of y = 1, what is Ann’s best response? c. If they choose their effort levels without knowing their partner’s effort level, what is the Nash equilibrium of this game? d. What if Ann commits to an effort level first? What are the backward induction effort levels? Does this game have a first mover or a second mover advantage?

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

Describe what fixed costs and marginal costs mean to a company.

Heather has been an active participant in a defined benefit plan for 19 years. during her last 6 years of employment, heather earned $42,000, $48,000, $56,000, $80,000, $89,000, and $108,000, respectively (representing her highest-income years). calculate heather’s maximum allowable benefits from her qualified plan (assume that there are fewer than 100 participants). assume that heather’s average compensation for her three highest years is $199,700. calculate her maximum allowable benefits.